State Begins Tax Surplus Reimbursements To Counties

Revenue Generated From $205M Oversight

The Indiana Department of Revenue began making payments to local governments on Friday after a $200 million tax oversight.

The department blamed a programming error that didn’t properly reimburse income tax payments back to the localities.

The “mistake” happened just in time, as several local governments were facing serious public safety budget cuts.

Lawrence Mayor Dean Jessup said the tax surplus will greatly help Hoosiers in Lawrence, RTV6’s Tracie Wells reported.

“When I took office, we discovered the money was not there and we were going to have to make some serious decisions,” Jessup said.

Lawrence Fire Department Chief Mark DeLong said he was in a similar position.

“We thought we were in a position where we could survive. When we realized we couldn't, then we were looking at the cuts,” DeLong said.

Before the tax surplus, DeLong and Jessup said they were considering cutting seven to 10 people from fire department

“We were even facing the possibility of having to shut down a firehouse,” DeLong said.

For many localities across Indiana, the tax surplus came right in the nick of time.

“Apparently, we are receiving $993,000 back,” Jessup said.

For a full list of the Indiana counties that will receive a tax reimbursement, click here.

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